Company Overview
Consolidated Water Co. Ltd. operates as a utility provider focused on supplying potable water, treating wastewater, and delivering water for reuse alongside water-related products and services. The company serves a specific geographic footprint including the Cayman Islands, the Bahamas, the United States, and the British Virgin Islands through its retail, bulk, and service divisions. It functions within the Utilities sector and specifically the Utilities - Regulated Water industry, a classification that typically implies revenue streams supported by government-sanctioned rates and essential infrastructure requirements. The firm employs a workforce of 293 individuals to manage its operations across these international jurisdictions.
The total market capitalization of the entity is $512.29M, while its trailing twelve-month revenue stands at $132.07M. These valuation and revenue figures indicate that the company operates as a mid-sized enterprise within the utility landscape, balancing significant asset requirements with a relatively contained operational scale. The revenue figure of $132.07M suggests a steady stream of income derived from regulated tariffs and service contracts, which is characteristic of the water utility industry. The market cap of $512.29M reflects the market's assessment of the company's future cash flow potential relative to its current earnings and asset base.
Financial Health
Consolidated Water Co. Ltd. reported total revenue of $132.07M for the trailing twelve months, generating net income of $18.60M and an EBITDA of $25.17M. The gap between the $132.07M in revenue and the $18.60M in net income reveals a cost structure where operating expenses and taxes consume a significant portion of gross receipts, leaving a profit margin of 13.9%. The company generated free cash flow of $27.62M, a figure that exceeds its net income, indicating strong cash conversion efficiency and providing substantial financial flexibility for capital expenditures or debt reduction. The balance sheet shows a cash position of $123.79M against total debt of $3.03M, highlighting a highly conservative financial stance with minimal leverage. This liquidity is further supported by a debt-to-equity ratio of 1.34, which, in the context of such high cash reserves, suggests the company is not reliant on heavy debt financing.
The current ratio is reported at 6.12, a metric that indicates exceptional short-term liquidity and an ability to cover current liabilities more than six times over with available current assets. Regarding profitability efficiency, the return on equity is 8.7%, while the return on assets is 4.6%, revealing how management generates returns relative to the shareholder equity and total asset base respectively. The lower return on assets compared to return on equity is typical for capital-intensive utility businesses where a large asset base drives returns primarily through equity financing rather than debt. The high cash balance further reinforces the strength of the balance sheet, allowing the company to withstand periods of lower revenue without compromising its solvency.
Valuation Assessment
The trailing twelve-month P/E ratio is 27.66, whereas the forward P/E is projected at 20.84. The difference between these two metrics implies that the market expects earnings to grow significantly in the future, as investors are willing to pay a higher multiple for current earnings than anticipated future earnings suggest. The price-to-book ratio stands at 2.31, indicating that the stock trades at a premium of 131% over its book value, which may reflect the scarcity of water resources or the regulated monopoly nature of the business. Alternative valuation metrics such as the price-to-sales ratio of 3.88 and an EV/EBITDA of 15.76 provide additional context, suggesting the company is valued at a moderate multiple relative to its sales and enterprise value adjusted for earnings before interest, taxes, depreciation, and amortization.
The 52-week high for the stock is $39.12 and the 52-week low is $22.69. Without a specific current share price provided in the available facts, the trading range defines the volatility band within which the security has moved over the last year. The beta value is 0.50, which indicates that the stock price is expected to be approximately half as volatile as the broader market, offering a more stable investment profile compared to high-beta equities. This low beta is consistent with the defensive nature of the Utilities sector, which often performs differently during market downturns compared to cyclical industries.
Growth & Income
Revenue growth year-over-year is recorded at 4.4%, while earnings growth year-over-year is significantly higher at 103.8%. This disparity indicates that earnings are growing much faster than revenue, which implies that the company is likely benefiting from cost synergies, price increases passed to customers, or a one-time non-recurring gain that boosted net income disproportionately. The company offers a dividend yield of 1.7% and maintains a payout ratio of 45.7%. Given the high earnings growth rate, the payout ratio is highly sustainable, allowing the company to increase dividends over time while retaining sufficient earnings for reinvestment. The combination of steady revenue expansion and explosive earnings growth, coupled with a reliable dividend, establishes a growth and income profile that balances capital appreciation potential with income generation for shareholders.